Why It’s Important for Independent Insurance Agents to Be Proficient in Math

As an independent insurance agent, you sell policies from multiple insurance companies and aren’t employed by any one company. You also work on commission and earn money based on the policies you sell. However, if you truly want to be successful as an independent insurance agent, you need to be proficient in math.

Understanding What You’re Selling

You can’t properly sell insurance policies to people if you don’t even understand them. Policies will include copays, deductibles, premiums, savings, percentage increases, and other factors that impact the price. Overall, selling insurance requires fairly basic math skills. However, it is important to understand these math skills so you can properly explain the details to your clients. A clear understanding of math can also help you answer specific questions your clients will have about their policies and the factors involved. You then can easily make quick calculations to help your clients see the merit in the policies you sell.

Projecting Income

When you work as an independent insurance agent, you’re likely in it partly for the earning potential. However, it can be difficult to get started and earn big in the beginning. With the right math skills, you can determine how much you are likely to make and compare it with what you will need to earn to make ends meet. Most agents quit because they don’t earn enough from sales quickly enough to make ends meet. This means you need to invest a serious amount of time to build up a client base. Using math skills, you can make the calculations necessary to see what you need to do to get the amount of money you need.

Analyze Statistics

To be a successful insurance agent, you need to be able to review and analyze statistics. Looking over statistics can help you notice patterns in people who are buying insurance, people who don’t have insurance, and potential leads you can follow. You can use analysis in three main ways. You can describe and summarize the data, make predictions about the data, and use predictions to make informed decisions. To use this data, you will need to understand certain math principles.

You may think that being an independent insurance agent is just like being a salesman. However, that is not the case. You need to be proficient in math to be successful and build up a client base.

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